WRITTEN QUESTION No. 3104/98 by Sirkka-Liisa ANTTILA Eliminating the EU's surplus of pork for export arising from the Asian and Russian crises
Date: 1998-10-08
Institutions: ANTTILA, European Parliament
Subjects: EU aid, Russia, export, export restriction, increase in production, market support, pigmeat, private stock, storage













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91998E3104

WRITTEN QUESTION No. 3104/98 by Sirkka-Liisa ANTTILA Eliminating the EU's surplus of pork for export arising from the Asian and Russian crises  


Official Journal C 289 , 11/10/1999 P. 0022 





WRITTEN QUESTION P-3104/98by Sirkka-Liisa Anttila (ELDR) to the Commission(8 October 1998)Subject: Eliminating the EU's surplus of pork for export arising from the Asian and Russian crisesWithin the European Union, the BSE crisis made it possible to sell more pork between 1996 and 1998. The rise in consumer demand encouraged farmers to produce more pork than previously. Consequently, production rose by more than 30 % within the EU - a figure equivalent to the EU's annual exports of pork to Russia. Now the Russian market has collapsed. The rise in consumption occasioned by the BSE crisis has also ceased. Thus the problem of overproduction in the sector is serious, as it could be tackled with the aid of exports only by finding new export markets capable of absorbing a volume equivalent to total previous annual exports to third countries.The management committee for the industry has recommended introducing subsidies for private storage. This by itself will not be sufficient: more effective measures are needed to overcome the problem of overproduction. The option which ought to be pursued is using environmental subsidies to reduce production in those areas where the greatest environmental risks exist. Salmonella is a problem in many producing countries. One objective of reducing production in such cases should be to ensure the production of high-quality meat and to reduce production affected by salmonella.Producer prices for pork are already so low that they cover only part of production costs. There are serious problems in the pork market, therefore. We must not allow this situation to continue, because it will result in widespread bankruptcies in the industry.What will the Commission do to eliminate overproduction in the pork sector and the consequent serious market problems, and what is its timetable for this?Answer given by Mr Fischler on behalf of the Commission(4 November 1998)It is true that pig meat production in Community is increasing from the 1997 level, probably by around 6 %. The serious market disturbance is created by this oversupply of meat and naturally the difficulties in export markets have made it more serious.The Community exported in 1997 a total of 1,06 million tonnes of pigmeat to third countries, of which exports to Russia were 32 %. After the Russian crisis began in August, Community exports rapidly decreased, but a recovery is already under way, since some Member States now export to Russia. Developments in recent weeks show that exports to the Far East are improving and that also new market outlets have been found.As long as prospects for export were poor it was not considered effective to raise export refunds. Now as export prospects seem to be improving again, the export refunds for pig carcasses and cuts have been raised with effect from 15 October 1998. The export refunds and the aid for private storage are the only market support measures provided under the pigmeat market organisation. They both are now in effective use.